ECONOMIC SECURITY : MACROECONOMIC AND FINANCIAL POLICY //
G7 COMPLIANCE ON MACROECONOMIC POLICY 1975-2025
100
75
50
25
0
Compliance (%)
Deliberation (% words)
Commitments (%)
compliance. Putting debt-to-gross domestic product “on a sustainable path” saw compliance rise from 69% for 2014 to 88% for 2015, then dip to 63% for 2016. Commitments on global macro- economic policy coordination – specifically global growth and recov- ery – had generally low compliance. Members averaged 78% compli- ance for 2013 on recovering from the global financial crisis, but only 63% on achieving strong economic growth after the Covid-19 pandemic. Similarly, the commitment to restore growth to the level anticipated before the pan- demic had only 50% compliance. Compliance with G7 macroeco- nomic policy commitments can be increased by holding more meetings of G7 finance ministers and central bank governors each year and committing them to report back to the leaders, and by having leaders involve the private sector, as both are associated with high compliance. G7 leaders should
also make more ambitious commit- ments, as the 17 such commitments assessed averaged 88% compliance, compared to 81% for the others. France’s 2026 presidency has stated that reducing global imbalances, and thus macroeconomic policy, will be the top priority at Évian. Given that the G7 has had high compliance on this issue, at Évian the leaders should indeed focus on correcting global imbalances, especially by making commitments on members’ domestic demand, the reduction of the debt-to- GDP ratio and the use of education to promote growth, by mobilising their finance ministers, central bank gov- ernors and the private sector, and by making ambitious commitments overall. However, correcting global imbal- ances requires action beyond the G7, so G7 leaders should act on industrial overcapacity in China, investment in developing countries and trade tensions.
// ALISHA ASLAM Alisha Aslam is a lead analyst with the G7 Research Group and a compliance director with the G20 Research Group. She is a third- year undergraduate student at the Universi- ty of Toronto where she is pursuing a degree in international relations, with a focus on inter- national economy. She also works in nation- al defence at the Government of Canada. Her interests lie in global trade and security diplo- macy. The views expressed in this article are her own.
X-TWITTER @g7_rg www.g7.utoronto.ca
33 globalgovernancemedia.org
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